| Project Detail |
Project Name
Henan Tian Lun Safety Enhancement and Methane Leakage Reduction Project
Project Number
58130-001
Borrower / Company
Henan Tian Lun Gas Group Limited
Country / Economy
China, Peoples Republic of
Location
Baiyin, Chengdu, Datong, Deyang, Hebi, Huzhu, Jintang, Liquan, Qian, Xuchang
The proposed ADB assistance will fund Henan Tian Lun Gas Group Limiteds rehabilitation of 10 city gas projects across 5 provinces in the PRC. The loan will enhance operational safety and network reliability through methane leakage reduction and smart monitoring systems in these areas.
Objectives and Scope
This project will innovate the targeted use of long-term corporate financing in the PRC to support CAPEX earmarked specifically for measurable methane leakage reduction, as well as improvements in network integrity enhancement and safety improvements. The ADB project will underpin the novel requirement that a company document and report methane leakage reduction impacts resulting directly from the project.
Linkage to Country/Regional Strategy
The project is aligned with ADBs Strategy 2030 operational priority 2 (accelerating progress in gender equality), operational priority 3 (tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability) and operational priority 4 (making cities more livable). Sustained natural gas use to displace coal consumption is a key pillar of the PRCs NDCs under the Paris Agreement and enhances the resilience of cities through the broader provision of reliable and uninterruptible supplies of cleaner energy to last mile consumers. The provision of gas to meet basic energy demand contributes to building livable cities by providing uninterrupted access to energy in urban areas and surrounding communities. Given its focus on reducing network losses and leakage, the Project will qualify for climate mitigation financing under the Common Principles for Climate Mitigation Finance Tracking Version 3.
The project addresses the first strategic priority of ADBs country partnership strategy for the PRC, 2021-2025, which calls for supporting environmentally sustainable development and health security through private sector solutions, including last-mile connectivity and cleaner fuels.
The project embodies ADBs Operational Plan for Private Sector Operations, 2019-2024, and ADBs 2021 Energy Policy, which stipulates that investments in midstream and downstream natural gas are conditionally supported. The project was assessed in accordance with the Guidance Note on Implementing Operations Alignment with the Paris Agreement at ADB for alignment with the Joint MDB Assessment Framework for Paris Alignment for Direct Investment Operations building block 1 (BB1), alignment with mitigation goals, and an action plan to ensure alignment with building block 2 (BB2), adaptation and climate resilient operations, will be agreed as a condition for the first disbursement. |
